European Shares Seen Broadly Higher As Recession Worries Ease

(RTTNews) - European stocks are seen opening broadly higher on Friday as fears of a U.S. recession eased.

The dollar index weakened and the 10-year U.S. Treasury yields plummeted to 3.81 percent, reflecting expectations that the U.S. Federal Reserve will opt for small rate hikes from December.

While traders now price in a 50-bps point hike at the Fed's policy meet in December, upcoming economic data will likely shape how long officials keep raising rates beyond December.

Asian markets followed Wall Street higher, with benchmark indexes in Australia, South Korea, Japan and Hong Kong climbing 3-5 percent.

Gold traded slightly lower after rallying nearly 3 percent on Thursday to a more than two-month high.

Oil edged up slightly, with concerns over China's zero-COVID policy and strict lockdowns capping the upside.

China today reported 10,535 new locally transmitted cases for Nov. 10, the highest since April 29.

Cities such as Beijing, Zhengzhou, and Chongqing have stepped up lockdowns and other curbs as daily cases hit record highs.

Quarterly national accounts, industrial output and foreign trade figures are due from the U.K. later in the session, headlining a light day for the European economic news.

Destatis is scheduled to issue Germany's final consumer prices for October. Inflation is expected to rise to 10.4 percent, as initially estimated, from 10.0 percent in September.

Across the Atlantic, a report on consumer sentiment may sway sentiment.

U.S. stocks rose the most in more than two and a half years overnight, the dollar tumbled and the yield on the two-year Treasury note saw its biggest drop since October 2008, as weak inflation data raised hopes of Fed easing and a soft landing for the economy.

U.S. consumer inflation rose 0.4 percent in October, pushing the annual increase below 8 percent for the first time in eight months, data showed.

The Dow jumped 3.7 percent to reach its best closing level in almost three months and the S&P 500 soared 5.5 percent to hit a two-month closing high while the tech-heavy Nasdaq Composite skyrocketed 7.4 percent.

European stocks logged an 11-week closing high amid bets that U.S. inflation has peaked and the Federal Reserve would soon start scaling down the size of interest-rate hikes.

The pan-European STOXX 600 climbed 2.8 percent to log its biggest percentage gain in five weeks. The German DAX spiked 3.5 percent, France's CAC 40 index surged 2 percent and the U.K.'s FTSE 100 added 1.1 percent.